Autos extend gain amid rebound hope

AugustCole

NEW YORK (CBS.MW) -- Shares of Ford Motor surged along with the broader auto sector Monday amid hopes of a rebound in the sector.

Ford Motor
F, +0.42%
rose 67 cents, or 6.6 percent, to $10.88. A new report by Deutsche Bank said the outlook for the sector is becoming "overly pessimistic" because there are hints that the economy is turning around and supplier stocks are "trading at historically low multiples."

"We are becoming more bullish on the outlook for the auto sector, and are reiterating our 'buy' recommendations on Borg Warner, Lear and Magna," wrote analyst Rod Lache.

He also noted that during the last decade, auto stocks have had strong first quarters. Deutsche Bank has done banking work in the sector.

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